Under normal economic conditions,including the situation in which there is no surprise inflation,we expect the unemployment rate to
A) be increasing.
B) increase and then decrease.
C) be equal to the natural rate of unemployment.
D) decrease and then increase.
E) be decreasing.

Question

Quizplus · Accepted Answer

Under normal economic conditions, the unemployment rate is expected to be at the natural rate of unemployment, which is the rate of unemployment that exists when the labor market is in equilibrium and there is neither cyclical nor structural unemployment. This rate is determined by factors such as the economy's level of productivity, demographics, and labor market institutions.

Under Normal Economic Conditions,including the Situation in Which There Is